Indian shares fall in line with broader Asia; IT stocks drag

Nov 21 (Reuters) - Indian shares declined for a second day on Wednesday, tracking weakness in broader Asian markets, due to heightened concerns about global economic growth as crude oil prices struggled to hold ground.

Broader Asian shares skidded, weighed down by a renewed bout of selling on Wall Street. U.S. stocks were sold off for a second day on Tuesday as energy shares dropped due to a fall in oil prices, while retailers sank after weak earnings and forecasts, fuelling worries about economic growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 1.41 percent.

Oil prices recovered some of the over 6 percent plunge witnessed in the previous session, lifted by a report of an unexpected decline in U.S. commercial crude inventories as well as record Indian crude imports.

“Markets are down on negative global sentiment. But they have moved up quite a bit from their recent lows, so at these levels there is some nervousness as the corporate earnings season is over,” said Siddhartha Khemka, head of retail research at Motilal Oswal Securities.

“Market is now looking forward for OPEC’s (Organization of the Petroleum Exporting Countries) actions, comments from the U.S. and China on trade war.”

Software services exporter such as Infosys Ltd, Tata Consultancy Services Ltd (TCS) and Tech Mahindra Ltd were the worst hit on the NSE index, with shares falling between 3.6 percent and 4.6 percent.

Fall in technology stocks globally and rupee appreciation in the past couple of days are the reasons for negative sentiment in the Indian IT stocks, Khemka said.

The index to gauge such IT stocks, Nifty IT index plunged as much as 3.2 percent, in its biggest daily fall since Oct 19. Infosys stock hit its lowest since June 6, and both TCS and Tech Mahindra shares hit their lowest level in at least three weeks.

Meanwhile, shares of Dr. Reddy’s Laboratories Ltd surged up to 8.7 percent to post their biggest daily gain in an year, after it won an appeal in a U.S. court to sell a generic version of its rival Indivior Plc’s opioid treatment Suboxone Film.

Private-sector lender Yes Bank Ltd rose 4.5 percent after it reassured that the recent resignations bear no impact on the CEO selection process and that efforts are underway for mutual resolution with co-promoter Madhu Kapur & family.

Indian bond and money markets were closed on Wednesday for a public holiday. (Reporting by Krishna V Kurup in Bengaluru; Editing by Rashmi Aich)